2. Fiscal Incentives, The Business Promotion Act of Malta
Maltese companies producing and / or distributing feature films, television drama, documentaries and commercials can benefit from a reduced rate of tax at 5% as opposed to the 35% corporate tax rate. Companies Act in Malta allows for straightforward process of setting up Maltese companies.
Who can benefit from the incentive?
Maltese or foreign companies are eligible for the support scheme. A newly-formed Maltese company will be entitled to benefit from a substantial reduction in the tax payable on its taxable income. Up to 31st December 2008 such company will be taxable at the reduced rate of 5% up to maximum profits of Lm25,000 (€58,000) per employee. This is currently the lowest available corporate tax rate in the EU. ITC’s – until 31 December 2008 companies registered in Malta but operating overseas can avail of a lucrative corporate tax rate of 4.17%.
Did you enjoy reading this article? Please subscribe to our newsletter to receive more stories like this directly in your inbox.
